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Energizer Holdings - A Progress Report

Robert Altabet profile picture
Robert Altabet


  • We saw Share gains from increased focus at Energizer.
  • There were share losses at Duracell and Rayovac.
  • The gap between Energizer and Duracell has closed from 17.2 share points in January to 11.1 share points for the period ended Nov. 5.
  • Hurricane Matthew contributed about $21 million to the category.


Energizer (NYSE: NYSE:ENR), spun off as an independent battery company on July 1, 2015, is showing the share gains we anticipated as an independent company with increased focus on the battery category. The spin-off of Duracell to Berkshire Hathaway (NYSE: BRK.A, BRK.B) in February 2016 has been hampered by the normal integration management of an acquisition, complicated by the need for restructuring and integration into an organization with no prior battery experience or CP G infrastructure.

The Energizer - Duracell Share Interactions

The continuing story is the tradeoff between Energizer and Duracell in shares since the beginning of the year. Within Nielsen outlets the shift in the gap between Energizer and Duracell has moved 6 share points in Energizer's favor, from 17.2 for the four weeks ended Jan. 23, 2016, to 11.1 for the latest four weeks ended Nov. 5, 2016.

Within Nielsen outlets, I have observed the facings improvements at Walmart with none of the fanfare of the original losses; Energizer, Duracell and Rayovac (Spectrum, NYSE: SPB) are now at 38%, 27% and 35%, respectively. I see similar share of shelf improvements in non-Nielsen outlets such as Home Depot (HD). Energizer has also spoken of distribution gains including recovery of some of the losses of a few years ago, but without any specifics.

This sets the stage for a return to the historic relationship between these two major battery brands. The current 11-point gap should be sustainable and brings them back to the 11-point gap we saw in 2013. Energizer has spoken about keeping the fight for distribution and space rational and profitable. If they execute on that philosophy and don't get too greedy, they should be able to avoid an over-reaction from Duracell. Sustaining that gain would be worth about +6% for the North American business and +3.5% for the global entity.

This article was written by

Robert Altabet profile picture
Since 2002, I have been the owner of a consulting business, Alpha Beta Planning, that specializes in the areas of business development and planning as well as sales and market forecasting. I also provide marketing and forecasting due diligence for investors in the private capital markets. I am an  Advisory Board Member for BWG Strategy, consulting on battery related companies. I am a former Vice-President, Business Management at Duracell Batteries where I spent 28 years with experience that included extensive work in new product development and licensing, marketing management, market research and sales forecasting as well stints in manufacturing and financial planning.

Analyst’s Disclosure: I am/we are long ENR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (1)

The stock is down around 6 points in the last few weeks. There was a posting on SA Pro recently advising folks to short the stock. I wonder if some type of manipulation is going on.

I am long since buying last year at 33. Will buy more if it goes under 40.
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